KUALA LUMPUR (Nov 18): Hong Leong IB Research has maintained its Hold rating on IOI Corporation Bhd and cut its target price by 3.7% to RM4.23 and said the company’s 1QFY06/15 core net profit of RM228.8 million came in below expectations, accounting for only 15.7-16.5% of house and consensus full-year forecasts.

In a note Tuesday, the research house said key variance against house  forecast was the weaker-than-expected margins at the resource-based manufacturing division.

“FY06/15-17 net profit forecasts cut by 2.8-8.1%, largely to reflect lower EBIT margin assumptions at the resource-based manufacturing division.

“Post earnings forecast revision, SOP-derived target price is cut by 3.7% to RM4.23. Maintain Hold recommendation,” it said.